Latest Market Update - September 2024

The Bank Continues to Lower Rates

This week the Bank of Canada dropped interest rates again making this the bank’s third consecutive cut.  More drops are expected this Fall, and this is a welcomed relief for many homeowners.   The constrained economic growth, weakening labour market and softening inflation; is allowing the Bank to finally begin an easing cycle.   Before we get too excited though; the favourable impact of falling interest rates and inflation will take some time to spill into your bank accounts.  In the meantime, there is likely more pain to be felt for many borrowers.  

The real estate market for the most part has been soft with Greater Vancouver home sales falling 17% last month.   With the easing interest rates improving home affordability, we may be at the bottom of the market.  You know the saying; ‘don’t wait to buy but buy and wait’.  

Mortgage rates fall and the mortgage rate wars are beginning.  The 5-year fixed can now be offer as low as 4.44% and a variable rate at Prime -.80%.  

Private/Alternative mortgage rates have also moved lower, with 2nd Mortgages being offered under 10%.  

Did you know:  

Credit delinquencies are on the rise as Canadians’ debt climbed to $2.5 trillion in the second quarter of 2024.  According to Equifax Canada credit card holders are carrying an average balance of over $4,300.    

Need money to get rid of high credit card balances; no problem the solutions are available.  Click her to email me. 

Latest Market Update - June 2024

Bank of Canada Lowers Rate

All eyes were on the Bank of Canada Wednesday when as expected they lowered the bank rate by 25 basis points.  No doubt this is great news that many borrowers have been waiting to hear.  But what happens now?  When rates change; the overall affect usually lags, and it may take some time to feel the impact of lower rates.   But nonetheless, it’s very positive and a comforting relief for borrowers especially those with variable rate mortgages.

The real estate market is showing some weakness and last month’s data was much softer than expected.   There are a few locations that are an exception, but overall inventory has increased substantially, sale volumes have dropped, and prices have been softening.  That being said, average prices are higher than the same period last year and higher than last month.  

The drop in the bank rate should be very positive for the Real Estate market.  Many buyers have been waiting to see the direction of interest rates before taking on a home purchase.  Mortgage rates have softened, and 5-year fixed rates can be offered as low as 4.99%; Variable rate mortgages as low as 6.60%.  Given all of this, the best time to buy a detached house may be right now.

Need money and the bank said no?  Turn that:

“‘Sorry, I can’t make the numbers work’ 
to:  ‘no problem, how much do you need?’.  ”

Latest Market Update - April 2024

Housing and Affordability

Good news for Canada’s latest inflation figures announced on Tuesday.  We saw a modest improvement over last month.  Most of the improvement was with our ‘core’ inflation which strips out the more volatile components.  Interest rates are expected to ease as soon as the next Bank of Canada’s announcement in June.   Our inflation has been moderating but housing affordability, not so much.   And it’s a hot topic.  So hot in fact that all levels of government seem to be taking some sort of action and the latest action on housing coming from our Federal Government’s budget. 

Some highlights are as follows:

• Extending amortization for Insured mortgages to 30 years.

• Increased limits on withdrawing/using RRSPs for downpayment for first-time buyers.

• Introduction of a Canadian Renter’s bill of Rights.

• Provide more Federal land for housing developments.

• Increased capital gains tax.

• Increased spending to get homes built.

The probability of lower borrowing rates here in Canada is looking good, but this is not the case in the US.  Their economy appears to be exceptionally resilient, and the Federal Reserve will be reluctant to drop rates as quickly as we do.  This has been reflected in the Bond markets, which has an effect on our mortgage lending rates.  This will likely keep our fixed rates higher for longer.  The good news though is that lenders are getting very competitive, and we are seeing some great rate deals with some fixed-term rates being offered under 5%.  

Have questions? I can help. Contact Tony today.

Latest Market Update - An Active Start To Spring 2024

An Active Start To Spring 2024

We are off to a very active Spring real estate market.  Beyond seasonal trends, the expectation of lower interest rates seems to have excited the market.   We are experiencing strong sales, an increase in new listings, and rising prices. 

The Federal Government is expected to introduce some housing initiatives in its budget next month, but in the meantime, the BC Government has been the first to act.   The BC NDP has introduced a new framework to the Property Transfer tax with an increase in the Fair Market Value threshold for First Time Homebuyers and an increase in the Fair Market Value threshold for Newly Built Homes.  This will help First Time Homebuyers reduce or eliminate the cost of PTT.   Please contact me if you would like more details.  

The BC Government has also introduced a new Flipping Tax targeting short-term speculators. This will punish anyone selling a residential property that has been held for less than two years.   Some pundits believe this will constrict inventory levels and put added pressure on prices. 

If you planning to sell your home; your curb appeal and outdoor living space cannot be ignored.   Consider updating your landscaping and hardscapes.  Great-looking, useful, and maintenance-free landscaping is the new trend. 

Looking for inspiration for your next landscaping project? Check out a few of the images from our friends at Luxury Enterprises Ltd that are sure to inspire your next project. Their services range from landscaping to hardscaping, artificial grass to concrete as well as irrigation system installation.

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February 23 2024 - Latest Market Update

Inflation Rate Falls

Last month’s rate of inflation surprised the markets with a decrease from the month earlier and it now sits in the Bank of Canada’s target range.  This is providing added support for the Bank of Canada to begin lowering interest rates by late Spring.   Mortgage payment relief for many is now in sight. 

The inflation rate wasn’t the only thing that fell.   Alternate lending mortgage rates also have declined and are down on average 50 basis points.   Prime rate mortgage rates have been stable and there are some very good deals now being offered with a 5-year fixed rate below 5%; however, most borrowers should expect between 5% and 5.60% depending on the lender and the type of deal. 

All of this is boding well for a very good Spring real estate market.  Month-to-date sale volumes are looking strong, new listings are moderate and prices continue to push higher. 

Need financing and the bank says no; then contact me.  I have a solution to every financial challenge. 

ALTERNATIVE LENDING DEALS:  APPROVAL WITHIN HOURS

• 1st mortgages up to 75% financing with rates as low as 9.95%.  Fully open.

• 1st mortgages up to 50% financing with rates as low as 7.99%.  Fixed term rate.

• 1st mortgages up to 75% financing with rates as low as 9.95%.  Fully open.

• 1st mortgages up to 50% financing with rates as low as 7.99%.  Fixed term rate.

PRIME LENDING DEALS: APPROVAL WITHIN 24 HOURS

1st mortgage up to 80%:

• 3-year fixed as low as 5.49%

• 1-year fixed as low as 6.99%

• 5-year fixed as low as 5.29%

• 2-year fixed as low as 6.39%

IT’S EASY AND QUICK TO APPLY